Cheque books of six banks to go invalid from September 30: Notifies State Bank of India

Cheque books of six banks to go invalid from September 30: Notifies State Bank of India

New Delhi, September 20: Cheque books of SBI’s (State Bank of India) 6 subsidiary banks would be invalid from September 30. The bank has notified its customers to stop using the cheque books of these banks.

State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Raipur, State Bank of Travancore, State Bank of Hyderabad and Bhartiya Mahila Bank are the banks whose cheque books are getting invalid.

SBI has asked the account holders of these banks to submit an application to change the cheque book. Old cheque books and IFSC codes will go invalid after September 30.

SBI said that, after considering feedback from customers, it would review charges for certain categories of accounts for non maintenance of monthly average balance (MAB). After a gap of five years, SBI had reintroduced charges on non maintenance of MAB in April 2017.

Rajnish Kumar, managing director (national banking group), said, “we have received feedback from our customers on the issue and we are reviewing those.” He added, “we will internally debate whether any moderation for certain categories of customers like senior citizens and students needs to be done anywhere.”

A penalty of up to Rs 100 plus goods and service tax (GST) will be imposed for failing to maintain MAB in accounts. This is according to the list of revised charges of SBI.

In metropolitan areas, if the balance falls below 75% of the MAB of Rs 5,000, there will be charge of Rs 100 plus GST. Bank will charge Rs 50 plus GST if the shortfall is 50% or less of the MAB.

In rural areas, Rs 1000 has been kept as the MAB requirement. Here, penalty could be in the range of Rs 20 to Rs 50 plus GST if there is any shortfall in maintaining minimum balance.